Cycling Start-Up Peloton Raises $30 Million

Marion Roaman and John Foley are the co-founders of Peloton.CreditCreditBrian Harkin for The New York Times

Investors appear enamored of Peloton and its advanced home-cycling stationary bicycles, so much so that the start-up has raised money again to continue its expansion.

Peloton, a three-year-old company, plans to announce on Thursday that it has raised $30 million in new financing. The round was led by True Ventures and Tiger Global Management, an existing investor.

The new capital brings the company’s total fund-raising to more than $40 million.

It’s the latest sign of interest in Peloton’s bikes, which resemble sleek black versions of the spinning cycles made famous by fitness studios like SoulCycle. But a major difference are the waterproof customized tablet displays that run on Google’s Android operating system.

The cycles cost about $2,000, and class subscriptions are $39 a month.

Though the company is focused on health, according to a co-founder, John Foley, its emphasis is equally on creating attractive well-designed devices for customers who flock to the likes of Apple products.

“Our goal is to be the most coveted consumer item on the planet,” Mr. Foley said in an interview.

Peloton’s latest round, begun several months ago, comes after several months of business performance that has exceeded expectations, Mr. Foley said. Sales in December, January and February exceeded estimates by two to three times, he said.

The company is on track to generate $50 million in revenue this year and have 10,000 bikes on the market, he added. Its business model predicts that the company could start turning a profit next year.

That sort of performance drew True Ventures, whose co-founder, Jon Callaghan, was already a member of Peloton’s board. To Mr. Foley, solidifying a relationship with Mr. Callaghan — who is also a director of the wearable fitness company Fitbit — and his firm was an important show of confidence.

“Peloton has inspired a deep and loyal global community to share their passion for fitness, camaraderie and cycling,” Mr. Callaghan said in a statement. “Peloton’s beautiful hardware, immersive content and robust community excited us from Day 1.”

And Tiger Global, which led Peloton’s previous round, is regarded as a top investor in consumer-focused start-ups, with a portfolio of companies that includes the eyeglass company Warby Parker and the food delivery service Caviar.

With the new money, Peloton will focus on doubling its retail store count, to 16, and expanding its team, including hiring more software developers.

Though some may see the fancier spinning classes as a fad, it’s a trend that has lasted for years — and, Mr. Foley hopes, will continue for a long time.

“People are committed to this idea of boutique fitness,” he said. “Riding a bike and staring at the wall is stuck in the 1980s.”